MicroStrategy Buys Another 21,550 Bitcoin for $2.1B, Raising Holdings to $42B

Highlights:

• MicroStrategy bought 21,550 BTC for $2.1 billion, marking its fifth consecutive week of purchases.
• The company funded its Bitcoin purchase through proceeds from selling 5.4 million shares.
• MicroStrategy’s Bitcoin portfolio is now worth $41.53 billion, holding over 2% of BTC’s total supply.

On December 9, MicroStrategy, the world’s largest corporate Bitcoin holder, announced it acquired 21,550 BTC for $2.1 billion from December 2–8 at an average price of $98,783 per BTC. This latest move also signifies the company’s fifth straight week of Bitcoin purchases. 

MicroStrategy has acquired 21,550 BTC for ~$2.1 billion at ~$98,783 per #bitcoin and has achieved BTC Yield of 43.2% QTD and 68.7% YTD. As of 12/8/2024, we hodl 423,650 $BTC acquired for ~$25.6 billion at ~$60,324 per bitcoin. $MSTR https://t.co/8r7bFqMFof

— Michael Saylor⚡️ (@saylor) December 9, 2024

According to a filing with the U.S. Securities and Exchange Commission (SEC), the platform used the proceeds from the sale of 5.4 million shares of its common stock to fund its BTC purchase. It still has over $9 billion worth of shares available for sale. This is part of the company’s $42 billion capital raise plan over the next three years. The raise will be divided between a $21 billion equity offering and $21 billion in fixed-income securities.

MicroStrategy announces $42 billion capital plan including $21 billion ATM equity offering and a target of raising $21 billion in fixed-income securities. Join us at 5pm ET as we discuss our quarterly results and #Bitcoin Treasury Company plans. $MSTR https://t.co/eXYELbN1Dm

— Michael Saylor⚡️ (@saylor) October 30, 2024

As of December 8, the company owned approximately 423,650 Bitcoin, with a total purchase cost of about $60,324 per coin, as stated in the filing. The company’s Bitcoin holdings have cost it about $25.6 billion in total. 

At the current price of $98,040, MicroStrategy’s Bitcoin portfolio is worth $41.53 billion. The company now holds over 2% of BTC’s total supply. As of December 9, the company’s Bitcoin Yield, which measures the change in Bitcoin holdings compared to diluted shares, stood at 68.7% for the year.

MicroStrategy’s 2024 BTC Purchase Nearly Twice Its 2025 Target

MicroStrategy is continuing its Bitcoin buying spree. Bitcoin Archive reports that the business intelligence firm has acquired $19.643 billion worth of Bitcoin so far this year. MicroStrategy spent nearly twice as much on Bitcoin as it plans to spend next year.

MicroStrategy has bought almost $20 BILLION #Bitcoin this year. Already 2x their 2025 target.

Gotta pump those numbers up, Michael. 😅

$100 BILLION IN 2025! pic.twitter.com/7Sf7YQXQVN

— Bitcoin Archive (@BTC_Archive) December 9, 2024

MicroStrategy’s Bitcoin Purchases Have Small Market Impact, Says Analyst

Despite MicroStrategy’s large Bitcoin purchases, analyst Maartunn from CryptoQuant downplayed its impact on the overall BTC market. He said MicroStrategy only represents a small part of Bitcoin’s supply dynamics. Maartunn pointed out that long-term holders sold 734,000 BTC in the past 30 days, while MicroStrategy bought 171,000 BTC. Bitcoin exchange-traded fund (ETF)  issuers increased their holdings by 75,900 BTC. Short-term holders made the largest purchases, acquiring over 487,000 BTC in the past month.

❌ Don't overstate this.

The market is significantly larger than MicroStrategy.

In the last 30 days:
Long-Term Holders: -734k BTC
MicroStrategy Supply: +171k BTC
ETF Supply: +75.9k BTC

This leaves 487k BTC absorbed by other Short-Term Holders. https://t.co/HfWQSBDitg pic.twitter.com/JjMcr3tSDE

— Maartunn (@JA_Maartun) December 9, 2024

This means that despite MicroStrategy’s large Bitcoin purchase, the wider BTC market still influences its supply. Currently, Bitcoin is trading at $98,040, down 2.5% in the last 24 hours. While Bitcoin has risen a lot recently, MicroStrategy’s chairman predicts it will reach $13 million by 2045.

Saylor Urges US to Sell Gold and Buy BTC

In a recent interview, MicroStrategy’s founder outlined key reasons for the United States to replace gold with Bitcoin. The Bitcoin supporter argued that BTC could help the U.S. keep its status as the global reserve currency and strengthen its position in the international financial system.

He proposed that the U.S. acquire 20-25% of the total Bitcoin supply. Saylor believes this would reduce gold’s value, creating economic challenges for competing nations. He expects countries like Russia and China to sell assets to buy Bitcoin, resulting in capital returning to the U.S. as gold loses its value.